Karnataka's economic growth this year may get contracted due to flood havoc: Report
Bengaluru, Oct 11: Karnataka's economic growth for the current year may get "contracted" due to the havoc caused by floods, the mid year review of state's finances tabled in the legislative assembly on Friday said.
It also said the union Finance Minister's announcement of reduction in Corporate Income Tax for the year 2019-20 may have an adverse impact on the devolution from government of India, as the divisible pool of taxes may come down.
"The state's economic growth (GSDP) was 9.6 per cent during FY 18-19.
The havoc caused by the floods in the state in 2019-20 has affected the socio-economic conditions. This has had an adverse impact on the investment in infrastructure and other development activities because of which the growth may get contracted for the current year," the mid year review stated.
With the increase demand for flood relief and other contingent liabilities, the Karnataka Chief Secretary, who is also the head of the Fiscal Management Review Committee, has advised the Finance department to propose additional resource mobilization measures to ensure that all fiscal parameters will be maintained.
The Committee noted the increased pressure on the state government to take up relief activities in flood hit districts and consequent requirement of funds,the review said.
The committee also noted that around Rs Rs 5,000 crore was already made available through reallocation of budgetary grants and supplementary estimates for flood relief work.
It also said the Chief Secretary has advised the finance department to follow up with the union government through the disaster management cell of the Revenue department for early release of funds under NDRF.
A total of 2,798 villages in 103 taluks of 22 districts were affected by floods in which around seven lakh people were shifted to safer areas.
Ninety one people died and about 3,400 heads of cattle perished in the rains and floods.
The review noted that devolution from the government of India in the first six months of 2019-20 was Rs 14,668 crore at 36.8 per cent of budget estimate of Rs 39,806 crore
However the union government in its July 5 budget indicated that devolution to the state was Rs 38,134 crore, which was Rs 1,672 crore lower than the amount indicated in the budget February 2019.
"Subsequent to the budget presented by the Union government in July, the Finance Minister has announced reduction in Corporate Income Tax for the year 2019-20.
This may have an adverse impact on the devolution as the divisible pool of taxes may come down,"it further said, noting that devolution as a proportion of actuals of 18-19 was 41.7 per cent in the first half of last year.
The review also noted that Karnataka has been maintaining revenue surplus since 2004-05 and upto September 2019, the revenue surplus was Rs 12,376 crore, compared to the budget estimate of Rs 258 crore, "reflecting a comfortable mid year revenue position for the state."
"Revenue surplus would also be maintained at the end of FY 19-20," it added.
The review also pointed out that with prudent fiscal management, continuing revenue mobilization efforts, pruning down non-essential expenditure and identification of savings to partly finance new expenditure commitments included in the Supplementary Estimates, it should be possible to remain within the fiscal deficit limit proscribed.
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LPG supply to be cut off if households refuse PNG switch where available: Govt order
New Delhi (PTI): The government has mandated that cooking gas LPG supply to households will be discontinued if consumers fail to switch to piped natural gas where such connectivity is available, under a new order aimed at accelerating gas network expansion and reducing reliance on a single fuel.
As India grapples with an LPG shortage due to the war in West Asia disrupting supplies from key sources, the government is pushing households and commercial users to switch to piped natural gas (PNG) -- a more convenient alternative that is both domestically produced and sourced through diversified supply.
PNG is continuously supplied to kitchen burners through pipelines, eliminating the need to book refills.
The Ministry of Petroleum and Natural Gas has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, aimed at accelerating pipeline infrastructure, easing approvals and promoting a shift from LPG to PNG to strengthen energy security.
The order issued on March 24 states that LPG supply "shall cease after three months" if a household does not opt for PNG despite availability. The provision, however, allows continuation where it is "technically infeasible" to provide a piped connection, subject to a no-objection certificate.
The move is aimed at freeing up LPG supplies from areas with pipeline connectivity and diverting them to regions lacking such infrastructure, while promoting "fuel diversification" amid global supply disruptions, including damage to liquefaction facilities in the Gulf and the continued blockage of the Strait of Hormuz.
Commenting on the order, Oil Secretary Neeraj Mittal in the post on X said "a crisis (has been) turned into an opportunity" through the ease of doing business reforms.
The order, issued under the Essential Commodities Act, seeks to fast-track pipeline infrastructure by easing approvals, standardising charges and ensuring time-bound permissions.
To facilitate rapid rollout, public authorities must grant right of way or permissions within prescribed timelines, failing which approvals will be deemed granted. The order also bars authorities from imposing charges beyond those specified.
In housing areas, entities controlling access must grant permissions within three working days, and last-mile PNG connectivity is to be provided within 48 hours. Applications for pipeline connectivity in such areas cannot be rejected.
The order further provides for intervention by designated officers with powers akin to a civil court to resolve disputes over land access and grant right of way where necessary.
Authorised entities must begin laying pipelines within four months of approval or face penalties, including possible loss of exclusivity.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has been designated as the nodal agency to monitor implementation, including tracking approvals, rejections and compliance.
In case the right of way or right of use permission to lay pipeline to residences for supply of PNG is not granted by the entities that control access to the housing complex, a notice will be issued and three months thereafter oil marketing companies will stop supply of LPG.
Listing out "consequences of households not applying for and obtaining PNG connection when notified by authorised entity" that has laid a pipeline to supply such fuel, it said, "The LPG supply to such an address shall cease after three months from the date of the communication."
"The supply of LPG to a household shall not cease, if the authorised entity issues a no-objection certificate (NOC) on the ground that it is technically infeasible to provide a piped natural gas connection or gas supply to such household," it said.
The authorised entity shall maintain records of the reasons for such technical infeasibility and withdraw the NOC as and when it is able to provide and operationalise the piped gas connectivity to such households.
